musing -re the slump in share price19 Oct 2018 09:48
Just musing re my innermost thoughts prevailing here.
Whilst being committed to this share based on fundamentals going forward and based on my own research there is little wonder that at one point yesterday this share had fallen 40% or 40p within the last 6 weeks. Ok - perhaps the sp was over inflated at the peak? Little wonder then that some short term investors have bailed out depressing the price even further.
The fact is that from having a small free float a few weeks ago further warrants have been issued, some at below the prevailing sp, which have undoubtedly diluted the original shareholders value on paper. Additionally, for the AIM this share was highly priced at almost £1 recently. Most investors on AIM look for a quick profit and possibly tend to look at low value shares (under 1p or in the low pennies rather than around the £1 mark) and are reluctant to hold for long periods, when falling dramatically, and often set stop loss targets of low percentages, which trigger further sales, rather than allow the value to drift 40% without action.
I believe the future is bright here - but until the new acquisition has bedded in and profits and value are reflected in the next set of financial accounts, the best we have is probability and hopes that David 'got it right'.
Should work out well imho - but nagging doubts prevail based on recent AIM performance and the thought that perhaps we are trying to grow too quickly. As has been seen, this is probably partly responsible for reducing the equity percentage value of original long term holders shares.
Against all this we have good and increasing numbers in place and now have the vehicle of construction 'in house' making us a very attractive take over option for one of the big players.
An interesting 6 months lies ahead of us - for those who are in in for the long term.
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